CBP Circular Letter

May 11, 1990 CBP CIRCULAR LETTER The following regulations are hereby adopted for implementation of Central Bank Circular No. 1234 dated April 6, 1990: 1. No bank shall sell, discount, assign, negotiate, in whole or in part such as thru syndications, participations and other similar arrangements notes, receivables, loans, debt instruments and any type of financial asset or claim, except government securities, on a without recourse basis unless such receivables, notes, loans, debt instruments and financial assets or claims are registered with the Securities and Exchange Commission (SEC). This prohibition includes transactions between a bank and its trust department. 2. No bank shall be a party in any capacity , in any transaction involving the sale, discounting, assignment, negotiation in whole or in part such as thru syndication, participation and other similar arrangements of any note, receivables, loans, debt instruments and financial assets or claims, except government securities, among and between other parties on a without/recourse basis unless such notes, receivables, loans, debt instruments and financial assets or claims are registered with SEC. asiadc 3. The prohibited practices, arrangements and transactions enumerated under Subsection 1290.1a (1), (2) and (3) and 2290.1a (1), (2) and (3) of the Manual of Regulations for Banks and Other Financial Intermediaries, Books I and II, respectively, are made part of these regulations. Any violation of the above rules and regulations shall be subject to any or all of the following sanctions: 1. Suspension of quasi-banking authority for a period of six (6) months; and 2. Monetary penalty of P500.00 per day per transaction for each and every officer of the bank involved in any capacity in any transaction violative of these regulations. As may be approved by the Monetary Board. This Circular Letter shall take effect immediately. (SGD.) GABRIEL C. SINGSON Senior Deputy Governor